City Council

MINUTES CITY OF DEKALB REGULAR MEETING OF CITY COUNCIL MAY 29, 2018 The City Council of DeKalb, Illinois, held a Regular meeting on May 29, 2018, in the City Council Chambers of the DeKalb Municipal Building, 200 South Fourth Street, DeKalb, Illinois. Mayor Smith called the meeting to order at 6:00 p.m. A. ROLL CALL Deputy City Clerk Scott called the roll and the following members of the City Council were present: Alderman Dave Jacobson, Alderman Bill Finucane, Alderman Mike Marquardt, Alderman Pat Fagan, Alderman Kate Noreiko, Alderman Mike Verbic, Alderman Tony Faivre, and Mayor Jerry Smith. Also present were: Interim City Manager Patty Hoppenstedt, City Attorney Dean Frieders, Finance Director Molly Talkington, Police Chief Gene Lowery, Fire Chief Eric Hicks, Community Development Director Jo Ellen Charlton, Public Works Director Tim Holdeman, Human Resources Director Cris Randall, Economic Development Planner Jason Michnick, Management Analyst Patrick DiDiana, and Deputy City Clerk Ruth Scott. B. PLEDGE OF ALLEGIANCE Police Office John Loechel led the Pledge of Allegiance. C. APPROVAL OF THE AGENDA – ADDITIONS / DELETIONS Mayor Smith asked Council members if there were any additions or deletions to the agenda. There were none. MOTION Alderman Verbic motioned to approve the agenda; seconded by Alderman Marquardt. VOTE Motion carried by an 8-0 roll call vote. Aye: Jacobson, Finucane, Marquardt, Fagan, Noreiko, Verbic, Faivre, Smith. Nay: None. Mayor Smith declared the motion passed. D. PUBLIC HEARINGS There were no Public Hearings scheduled. E. SPECIAL ITEMS OR PRESENTATIONS & CITIZEN’S COMMENTS 1. Special Items Regular Meeting Minutes May 29, 2018 Page 2 of 13 a. Proudly DeKalb Backup Has Arrived: Woodruff Family Children’s Trust Cancer Fundraiser. Mayor Smith and Police Chief Lowery provided information regarding this event, a fundraiser for Police Commander Craig Woodruff and his family. b. Proclamation: Men’s Health Month – June 2018. Mayor Smith read the proclamation and presented it to Assistant Public Works Director Faivre. c. Annie Glidden North Revitalization Plan Task Force Update. Alderman Finucane asked Economic Development Planner Michnick to provide information regarding Opportunity Zones, a new community development program established by Congress in the Tax Cuts and Jobs Act of 2017 to encourage long-term investments in low-income urban and rural communities nationwide. Economic Development Planner Michnick explained that the City was made aware of the Opportunity Zone program earlier this year. He explained that areas were chosen by allowing the governor from each state to designate 25% of qualifying census tracts in their respective states for formal designation as an Opportunity Zone. Based on that information, City staff formed a letter to Governor Rauner, listing the City’s qualifying census tracts, prioritizing areas in the Annie Glidden North (AGN) area. Economic Development Planner Michnick continued, stating that in April of this year, Governor Rauner announced that 327 of the 1,305 qualifying census tracts had been submitted to the federal government for inclusion, three of which were in DeKalb. The DeKalb census tracts chosen are on the west side of the community, including the Northern Illinois University (NIU) campus, as well as both the east and west side of Annie Glidden Road, incorporating almost all the areas noted in the AGN Revitalization Plan. Economic Development Planner Michnick explained that how Opportunity Zones work has not been fully vetted. However, it specifically focuses on capital gains taxes. For instance, when the sale of a property occurs, the unrealized capital gains are reallocated into an Opportunity Fund and reinvested back into an Opportunity Zone. He noted that the latest information available is that the U.S. Treasury Department has handed the program off to the Internal Revenue Service so they can develop what the mechanisms will look like. He further stated that while it hasn’t been fully announced how the City is going to be able to implement the Opportunity Zone as part of the AGN plan, it’s great to know we have another tool as we move forward and try to implement the strategies being put tougher by the AGN Taskforce.  Regular Meeting Minutes May 29, 2018 Page 3 of 13 Brief discussion ensued between Alderman Finucane and Economic Development Planner Michnick regarding the location of the Opportunity Zone. 2. Presentations There were no presentations scheduled. 3. Approval of the Mayor’s Appointments Mayor Smith stated the process of reappointing and appointing board, commission and committee members continues. Mayor Smith then spoke of the resignation of former City Clerk Sue Herrmann, noting that he will be making an appointment for that role after he’s gathered information from the community, Council and staff. He explained that in the interim, the role of City Clerk would be covered by the City’s three Deputy Clerks – Ruth Scott, Shelly Jureczek and Carri Parker. 4. Public Participation Dwayne Brown provided his opinion regarding the City of DeKalb not being business friendly and offered suggestions for improving. He also commented about the Union Pacific train that blocked traffic for several hours on May 25, 2018. He suggested that a liaison be put in place for contacting Union Pacific when situations like this arise. Tony Verbic provided his opinion regarding Smart Meters, noting the issues related to Smart Meters, including no surge or circuit breaker protection. He further stated that he felt that ComEd and other utilities are violating fire codes with regard to Smart Meters. He provided his contact information for anyone wanting to speak to him regarding Smart Meters, and asked Council to protect citizen’s rights from the hard sell tactics of the utility companies. F. CONSENT AGENDA – OMNIBUS VOTE MOTION Alderman Noreiko motioned to pass the items listed under the Consent Agenda; seconded by Alderman Finucane. Mayor Smith read the following items by title only: 1. Approval of City Council Minutes a. Approval of Executive Session Minutes. 2. Receive & File Regular Meeting Minutes May 29, 2018 Page 4 of 13 a. Accounts Payable and Payroll through May 29, 2018, in the Amount of $1,902,382.85. b. Investment and Bank Balance Summary through March 2018. c. First Quarter 2018 Revenues and Expenditures for the General Fund and Water Fund through March 2018. VOTE Motion carried by an 8-0 roll call vote. Aye: Jacobson, Finucane, Marquardt, Fagan, Noreiko, Verbic, Faivre, Smith. Nay: None. Mayor Smith declared the motion passed. G. ITEMS FOR SEPARATE ACTION 1. Ordinance 2018-025 Amending the Fiscal Year-End December 31, 2017 Budget. (Passage on First Reading, Waiver of Second Reading) Mayor Smith read Ordinance 2018-025 by title only. MOTION Alderman Verbic motioned to pass Ordinance 2018-025; seconded by Alderman Marquardt. Finance Director Talkington provided an overview of this item, stating that during the FY2017 audit, 10 out of 29 total funds were identified as exceeding budgeted dollars. The number of funds exceeding budgeted dollars exceeded last year’s where only six funds exceeded budgeted dollars. The main reason for this is because the City did not approve a carry-over budget amendment from FY2016.5 that would have increased the FY2017 budget in order to pay for items that were approved in the FY2016.5 budget but not purchased until FY2017. The carry-over budget amendment for FY2017 was not brought to Council because there was a transition from the Interim Finance Director to the current Finance Director. The funds that exceeded budgeted dollars in FY2017 were the Special Service Area #6 Fund, the Foreign Fire Insurance Fund, the General Debt Service Fund, the Fleet Replacement Fund, the Capital Equipment Replacement Fund, the Airport Fund, the Health Insurance Fund, the Liability & Property Insurance Fund, and the Police and Fire Pension Fund (both of which the City receives budgeted dollars from a third party that works for the pension fund). Alderman Fagan asked if the amendment would affect the General Fund, to which Finance Director Talkington stated it would not. VOTE  Regular Meeting Minutes May 29, 2018 Page 5 of 13 Motion carried by an 8-0 roll call vote. Aye: Jacobson, Finucane, Marquardt, Fagan, Noreiko, Verbic, Faivre, Smith. Nay: None. Mayor Smith declared the motion passed. MOTION Alderman Faivre motioned to waive Second Reading of Ordinance 2018-025; seconded by Alderman Marquardt. VOTE Motion carried by an 8-0 roll call vote. Aye: Jacobson, Finucane, Marquardt, Fagan, Noreiko, Verbic, Faivre, Smith. Nay: None. Mayor Smith declared the motion passed. 2. Ordinance 2018-026 Amending the Fiscal Year-End December 31, 2018 Budget. (First Reading) Mayor Smith read Ordinance 2018-026 by title only. MOTION Alderman Noreiko motioned to pass Ordinance 2018-026; seconded by Alderman Faivre. Assistant Public Works Director Faivre provided an overview of this item, stating that at the April 9, 2018, Regular City Council meeting, Council approved design engineering for several Community Development Block Grant (CDBG) funded road resurfacing improvements along Harvey, Charter and Tyler Streets. Staff has recently learned that although these improvements were budgeted for and approved as part of the CDBG Housing and Urban Development (HUD) Budget, they were not carried over and included in the City’s FY2018 Budget for Council approval. Therefore, staff is requesting approval of an amendment to the FY2018 Budget to include the $440,000 CDBG funding so that these projects may continue as planned. VOTE Motion carried by an 8-0 roll call vote. Aye: Jacobson, Finucane, Marquardt, Fagan, Noreiko, Verbic, Faivre, Smith. Nay: None. Mayor Smith declared the motion passed. MOTION Alderman Fagan motioned to waive Second Reading of Ordinance 2018-026; seconded by Alderman Finucane. VOTE Regular Meeting Minutes May 29, 2018 Page 6 of 13 Motion carried by an 8-0 roll call vote. Aye: Jacobson, Finucane, Marquardt, Fagan, Noreiko, Verbic, Faivre, Smith. Nay: None. Mayor Smith declared the motion passed. 3. Ordinance 2018-027 Establishing Compensation and Benefits for Elected Officials of the City of DeKalb. (First Reading) Mayor Smith read Ordinance 2018-027 by title only. MOTION 1 Alderman Verbic motioned to pass Ordinance 2018-027; seconded by Alderman Marquardt. Finance Director Talkington provided an overview of this item, stating that pursuant to Illinois law, if Council wishes to adjust pay and compensation schedules for elected officials of the City and have them take effect for the 2019 municipal election, action must be approved prior to October 6, 2018. This item would allow Council to make changes to elected official compensation and benefits, if desired. Finance Director Talkington then noted the current annual salaries of the City Clerk ($8,000), Mayor ($22,500), and Aldermen ($5,400 each), stating that the current Mayor and Aldermen salaries are in-line with comparable communities. Alderman Finucane referred to the recent resignation of the City Clerk and asked if a pay increase for that role were approved, would it take effect as of the 2019 election or the 2021 election. City Attorney Frieders confirmed it would be 2021. City Attorney Frieders provided information regarding provisions in the Municipal Code regarding the City Clerk position and vacancies, stating a vacancy in the City Clerk Office is appointed for the remaining term of office. Alderman Finucane further stated that given the City’s fiscal situation, he doesn’t think an increase in salaries is needed. Alderman Jacobson stated that while he respects Alderman Finucane’s course of thought, he feels that Council members are paid well below minimum wage for the work they do, which includes a significant amount of prep time in order to be prepared for Council meetings, as well as 24/7 community engagement. He encouraged Council members to consider increasing their salaries. Alderman Fagan stated that while he understands both points of view, the role of a Council member shouldn’t be looked at from a monetary standpoint. Alderman Noreiko stated that while she thinks there’s validity in Alderman Jacobson’s comments, since it’s been some time since Council salaries have been adjusted. However, she’s also aware of fact that Council imposed no increases for  Regular Meeting Minutes May 29, 2018 Page 7 of 13 non-bargaining unit staff this year and feels it’s important that Council also come under that restriction. Alderman Marquardt stated that he’s not as concerned with the Aldermen’s compensation as much as the compensation of the Mayor and City Clerk due to the number of hours they put in to their roles. Mayor Smith stated this item could be passed on First Reading and then tabled until further information is gathered. However, he would ask for any motion if anyone is interested in waiving Second Reading. Alderman Finucane stated that more time is needed before making a final decision and suggested tabling this item for 60 days. MOTION 2 Alderman Finucane motioned to table Ordinance 2017-027 for 60 days; seconded by Alderman Verbic. Alderman Faivre asked that more information be provided regarding the City Manager structure or full-time Mayor structure form of government. VOTE 2 Motion carried by an 8-0 roll call vote. Aye: Jacobson, Finucane, Marquardt, Fagan, Noreiko, Verbic, Faivre, Smith. Nay: None. Mayor Smith declared the motion passed. NOTE: There was no vote taken for Motion 1. 4. Resolution 2018-063 Authorizing the Appointment of an Interim City Manager. Mayor Smith read Resolution 2018-063 by title only. MOTION Alderman Noreiko motioned to pass Resolution 2018-063; seconded by Alderman Verbic. City Attorney Frieders provided an overview of this item, stating that with the recent resignation of the City Manager, Assistant City Manager Patty Hoppenstedt has been serving in the role of City Manager on an interim basis. Prior to the City Manager’s resignation, Ms. Hoppenstedt had advised the Mayor and Council that her employment with the City would be ending this summer, based upon her family’s relocation to another state. Ms. Hoppenstedt accepted the interim appointment to continue the City’s operations, pending her planned resignation and move. Regular Meeting Minutes May 29, 2018 Page 8 of 13 He continued, stating that under City Code and state law, various authority is provided to the formally appointed position of City Manager, and it is recommended to consider the formal appointment of an Interim City Manager to replace Ms. Hoppenstedt. Therefore, at this time, based upon the direction provided by the Mayor, it is requested that the Council consent to the appointment of Finance Director Talkington as Interim City Manager. This interim appointment only contemplates the service as Interim City Manager until the first to occur of a permanent City Manager appointment being made, the further action by Council to terminate the appointment, or Ms. Talkington’s resignation from the position. The appointment includes a 10% increase in compensation in recognition of acting duties, with that compensation starting as of the first date of her employment as Interim City Manager and ending upon the day before her last day as Interim City Manager. The appointment would be effective on the first day after the effective date of Ms. Hoppenstedt’s resignation. Mayor Smith stated that Interim City Manager Hoppenstedt has indicated she will be resigning her role by the end of June 2018. He added that Interim City Manager Hoppenstedt, in anticipation of her departure, already has a plan in place for cross training Finance Director Talkington should she be chosen as her successor in order to ensure the City’s operations will move forward. Mayor Smith expressed his confidence in Finance Director Talkington. VOTE Motion carried by an 8-0 roll call vote. Aye: Jacobson, Finucane, Marquardt, Fagan, Noreiko, Verbic, Faivre, Smith. Nay: None. Mayor Smith declared the motion passed. 5. Resolution 2018-064 Amending the Architectural Improvement Program Guidelines and Application. Mayor Smith read Resolution 2018-064 by title only. MOTION 1 Alderman Noreiko motioned to pass Resolution 2018-064; seconded by Alderman Verbic. Economic Development Planner Michnick noted that during the Committee of the Whole meeting of May 14, 2018, Council was presented with a review of the Architectural Improvement Program (AIP). Council also discussed specific modifications to the guidelines and approval process for funding projects through that program. As a result of the policy discussion, staff has prepared a revised set of documents related to the AIP to be considered for formal approval. Economic Development Planner Michnick then provided a comprehensive overview of the revised document that includes expanding the list of potential  Regular Meeting Minutes May 29, 2018 Page 9 of 13 projects under AIP, a modified application process, and a requirement for the building owners or businesses to have a pre-application inspection of the property. Following the presentation, there was brief discussion between Alderman Noreiko and Economic Development Planner Michnick regarding preapplication inspections and the possibility of a committee to review the applications. It was determined that during policy discussions, Council determined that creating a committee to review the applications would only add another step to the process. Alderman Jacobson asked if a project was approved for the exterior of a building, would the interior still be inspected. Economic Development Planner Michnick confirmed it would. Alderman Jacobson provided further input, stating he feels it inappropriate that staff has the final say on the projects approved. Staff can recommend but Council should have the final say. He continued, noting parts of the process he doesn’t agree with. Discussion ensued regarding the AIP document and process as presented. MOTION 2 Alderman Marquardt motioned to amend the AIP document (removal of second and third sentences); seconded by Alderman Verbic. Discussion ensued regarding revisions to the AIP document and process as presented. MOTION 3 Alderman Jacobson motioned to approve Resolution 2018-064 conditionally; seconded by Alderman Finucane. Alderman Verbic rescinded his second to Motion 2. Alderman Noreiko rescinded her motion to pass Resolution 2018-064 (Motion 1). Revision to be made and brought back to Council under the Consent Agenda at the June 11, 2018, Regular City Council meeting. VOTE Motion carried to pass Resolution 2018-064 conditionally by a 7-1 roll call vote. Aye: Jacobson, Finucane, Fagan, Noreiko, Verbic, Faivre, Smith. Nay: Marquardt. Mayor Smith declared the motion passed. 6. Omnibus Approval of Resolution 2018-065 Authorizing a Land Lease Agreement with Hillside Restaurant, Inc., d/b/a Hillside Restaurant, for a Portion of the Regular Meeting Minutes May 29, 2018 Page 10 of 13 Property Located on the West Side of North Second Street; and Resolution 2018- 066 Authorizing a Land Lease Agreement with Universal Restaurant Group, d/b/a O’Leary’s Irish Pub & Grill, for a Portion of Property Located on the West Side of South Third Street. Mayor Smith read the Omnibus Approval of Resolution 2018-065 and Resolution 2018-066 by title only. MOTION Alderman Faivre motioned to pass in Omnibus form Resolution 2018-065 and Resolution 2018-066. Community Development Director Charlton provided an overview and history of this item, stating that in the early initial Downtown Revitalization planning process, the public identified the need for improved outdoor dining facilities. City staff, along with Hitchcock Design, worked with Eduardo’s, the Hillside, and O’Leary’s in developing site plans, cost estimates and lease agreements in an effort to bring these café spaces to fruition. In 2009, Council approved three City property leases as requested by the Downtown restaurateurs to implement the patio construction. After eight years in operation, the previous leases have now expired for the second time and new ones must be ratified. Of the three previously approved leases, two are ready to be ratified at this time (the Hillside and O’Leary’s). Both leases are essentially the same and share the same lease rate ($0.90 per square foot annually) and terms (three years). There was brief discussion between Alderman Finucane and Community Development Director Charlton regarding the lease rate. Mayor Smith stated there had been some citizen concern regarding the O’Leary’s patio area and whether or not it was ADA compliant. Community Development Director Charlton responded that she was aware of two issues of concern, the first being adequate access around the fenced area, and the second whether or not the use of pavers is acceptable. Responding to the first issue of adequate access, Community Development Director Charlton stated that the area has been measured and it is well within the 36 inches required. The information was confirmed by Public Works Director Holdeman. Responding to the second issue regarding the use of pavers, Public Works Director Holdeman noted the use of pavers throughout the downtown area, not just at the O’Leary’s location. As long as they’re no more than one-quarter inch above the surface, they do meet ADA compliance. He noted that the Public Works Department is diligent about fixing any areas of paver surface that do not meet compliance.  Regular Meeting Minutes May 29, 2018 Page 11 of 13 Mayor Smith noted that he wants to continue responding to citizen concerns when they arise. VOTE Motion carried by an 8-0 roll call vote. Aye: Jacobson, Finucane, Marquardt, Fagan, Noreiko, Verbic, Faivre, Smith. Nay: None. Mayor Smith declared the motion passed. 7. Resolution 2018-067 Authorizing an Intergovernmental Agreement with the Illinois State Toll Highway Authority for Shared Improvements to the Intersection of Annie Glidden Road at Fairview Drive. Mayor Smith read Resolution 2018-067 by title only. MOTION Alderman Verbic motioned to pass Resolution 2018-067; seconded by Alderman Finucane. Management Analyst DiDiana provided an overview of this item, stating that staff is requesting that Council authorize an Intergovernmental Agreement with the Illinois State Toll Highway Authority to coordinate a payment of $20,784.51 for the City’s local match of shared improvements to the intersection of Annie Glidden Road and Fairview Drive. In addition, the Intergovernmental Agreement also defines maintenance and designates the entity responsible for the future maintenance of the completed work. Mayor Smith asked if this item was within budget, to which Management Analyst DiDiana confirmed it was. VOTE Motion carried by an 8-0 roll call vote. Aye: Jacobson, Finucane, Marquardt, Fagan, Noreiko, Verbic, Faivre, Smith. Nay: None. Mayor Smith declared the motion passed. 8. Resolution 2018-068 Authorizing the Negotiation and Execution of Two Electrical Aggregation Contracts with Dynegy for Electricity at the DeKalb Taylor Municipal Airport and City-Owned Street Lights and Traffic Controls for a Period Not to Exceed 12 Months. Mayor Smith read Resolution 2018-068 by title only. MOTION Alderman Faivre motioned to pass Resolution 2018-068; seconded by Alderman Faivre. Regular Meeting Minutes May 29, 2018 Page 12 of 13 Management Analyst DiDiana provided an overview of this item, currently has two agreements for electrical aggregation services – one for the DeKalb Taylor Municipal Airport (DTMA), and the other for City-owned streetlights and traffic controls; both agreements expire this summer. To ensure the City receives competitive energy rates, staff has collaborated with Rock River Energy Services to obtain bids on behalf of the City. Based on the bids received on May 7 and 8, 2018, staff recommends that Council authorize the negotiation and execution of two electrical aggregation contracts with Dynegy for the DTMA and City-owned streetlights and traffic controls, not to exceed 12 months. VOTE Motion carried by an 8-0 roll call vote. Aye: Jacobson, Finucane, Marquardt, Fagan, Noreiko, Verbic, Faivre, Smith. Nay: None. Mayor Smith declared the motion passed. H. NEW OR UNFINISHED BUSINESS There was nothing on the agenda for New or Unfinished Business. I. REPORTS – COMMUNICATIONS Alderman Finucane reminded everyone to stay hydrated in the hot weather. He also thanked Finance Director Talkington for stepping up to be the next Interim City Manager. Alderman Noreiko also thanked Finance Director Talkington for assuming the role of Interim City Manager. Alderman Verbic congratulated the DeKalb High School 2018 graduating class. Mayor Smith spoke about the continuing process of selecting the City’s next City Manager and progress the steering committee has made. He noted the steering committee is comprised of himself, Alderman Fagan, and Human Resources Generalist Michelle Brening. City Attorney Frieders spoke in reference to possible changes being made to the City’s court and administrative hearing process. Police Chief Lowery reported on the recent successful child safety seat event at Target. He also reported on an uneventful and peaceful Memorial Day holiday throughout the city, as well as the recently submitted mental health grant. Finance Director Talkington thanked Council for the opportunity to step in as the Interim City Manager and she looks forward to their continued support. Fire Chief Hicks stated that considering the hot weather, residents should keep an eye out on their neighbors. He also offered information about local cooling shelters, which include the DeKalb Public Library, the Senior Center, and the DeKalb Park District during the day, and Hope Haven, which is open 24 hours a day.  Regular Meeting Minutes May 29, 2018 Page 13 of 13 Community Development Director Charlton reported on Crime Free Housing training courses and the good work that Code Compliance Coordinator Carl Leoni providing that training. Public Works Director Holdeman reported that the first 30 days of the VEO bike sharing program have been successful. He also reported that interviews with companies who submitted proposals for DeKalb refuse service will begin on May 30, 2018. Human Resources Director Randall reported on the continuing process of identifying companies to assist with the City Manager search. J. RECESS FOR EXECUTIVE SESSION OF THE CITY COUNCIL There was no Executive Session scheduled. K. ADJOURNMENT MOTION Alderman Jacobson motioned to adjourn the meeting; seconded by Alderman Fagan. VOTE Motion carried by an 8-0 voice vote. Aye: Jacobson, Finucane, Marquardt, Fagan, Noreiko, Verbic, Faivre, Smith. Nay: None. Mayor Smith declared the motion passed. Mayor Smith declared the motion passed and adjourned the meeting at 8:06 p.m. ________________________________ RUTH A. SCOTT, Deputy City Clerk Approved by City Council: June 25, 2018.